Gold vs Sensex: Which gave better returns in last 10 years?

Gold investors have reaped slightly better returns than investors in stock market this decade. BSE Sensex has appreciated by 130% in the last 10 years, but gold has outdone it with 134% returns. Gold touched its peak of Rs 40,280 per 10 gramme on 7 September 2019. Sensex, on the other hand, has constantly hit fresh high and rallied above 40,000 mark in the recent past.

Gold was sold at a price of Rs 16,650 on 1 January 2010 per 10 grams in Mumbai. A decade later, the retail price for the yellow metal has risen to over Rs 39,000.

Sensex, in the last 10 years, has largely moved upward barring two years when it gave negative returns of -25.1% (2011) and -5% (2015). Gold delivered negative returns in three out of the last ten calendar years. For three consecutive years 2013, 2014 and 2015 gold gave  negative returns of -4.9%, -8.2% and -6.2% respectively to investors.

In the remaining seven years, gold delivered returns ranging between 5.2% in 2017 to 31.7% in 2011.

In absolute terms, if an investor had made a lumpsum investment of Rs 1 lakh in Sensex on January 1, 2010, the returns would now amount to Rs 2,30,918 . And, if an investor had invested Rs 1 lakh in gold on January 1, 2010, total returns now would be Rs 2,40,000.

Another precious metal, silver, has appreciated by 72.7% during the decade. However, it has delivered negative returns in five out of the last 10 years. During 2013, silver prices fell by 24.3 per cent, its biggest tumble in the decade.

The highest price of silver during the decade was recorded on 25 April 2011, when it clocked Rs 74,000 per kg due to the effects of the global financial crisis. In the remaining five years, silver has delivered a return in the range of 8.8% in 2011 to a massive 71% in 2010.

Barring 2016, silver delivered losses to investors between 2013 and 2018. The losses were in the range of 2.1% to 24.3%. The calendar year 2016 was an exception during the said period; investors got a 20% return during the year.

In absolute terms, if an investor had invested Rs 1 lakh in silver on January 1, 2010, the returns would now be Rs 1,74,460.